The Cross-Border Portability of Supplementary Pensions: Lessons from the European Union

Over the past 40 years, the European Union (EU) has developed the most advanced system of coordination of social security rights in the world, as a corollary to the free movement of workers. Notwithstanding, problems with the acquisition, transfer and fruition of supplementary pension rights still undermine labour mobility across the member states. This article aims to describe EU pension regulation in the field and illustrates how the EU has employed two different approaches to tackle the problem. The first approach is to directly facilitate the portability of supplementary pension rights – which deeply affects national social policy. The second is to develop transnational schemes leading to a single market for occupational pensions – an exercise in market-making integration. This article explores the main problems in implementing the portability principle and puts forward tangible solutions to unblocking the situation. This sheds light on the persistent tensions between supranational regulation and national pension policy, showing the need for a holistic strategy to resolve both institutional and technical issues.